When it comes time to explore your mortgage options, there are some important documents to have when applying for a mortgage in Ottawa.
Documents needed when applying for a mortgage
If you went through a divorce or separation in the past, a lender will ask for the separation agreement. This is to assure you do not have any alimony or child support payments. These payments can affect the debt servicing on the application. If you are making payments, the lender wants to confirm the payment amount.
Annual mortgage statement
Your lender typically sends this out at the beginning of the year. If you are applying for a mortgage, refinancing or renewing your mortgage later in the year, this document may be long forgotten about. It will be important to keep this as the lender will want a copy to confirm your mortgage details.
Proof of debts paid or credit debts closed
All to often a client will have a credit item that they feel has been paid off or closed but it is still reporting on their credit bureau. When closing a credit item it’s important to ask that a proof of the closing. Also if you need to contact the credit bureau company to have something corrected, this form will help. Also, proof that a mortgage has been paid and discharged is important to keep. This is to confirm to a lender that your property is free and clear.
When paying off a credit item, sometimes there may be interest accrued that does not get paid off at the same time. This may report on your next billing cycle. If you are not watching this credit item anymore, such as checking the statements, when the interest accrues and there is not a payment on this, it typically will go to collections after a period of time. This will affect your credit score.
If you are using the funds received as a results of the passing of a loved one for a down payment, a lender will need to see a copy of the will. This is to verify the funds you received were from this source.
Pay stubs, T4, T1 Generals and Notice of Assessments
If you are other then salary, a lender may use a two year average income. Or, if new to employment, they will want proof of your previous employment. With that, these are important documents to hold on to.
OAS/CPP and pension statements
These are important to have on hand to confirm the income.
12 months of rent recipients, phone, utilities bills
If you do not have very much established credit, a lender may ask for a 12 months history of a bill with payment on time. This will assist in confirming your ability to manage your financial obligations.
I invite you to contact me anytime to learn more about the important documents to have when applying for a mortgage.